With the context that the Chinese government reforms its IPO assessment mechanism to registrationbased system, this study, using two multivariate regression models based on prior studies, aims to examine whether the Chinese rigorous listing requirements are able to help the stock exchange to screen high quality IPO firms. It suggests that the approved IPO companies have better performances than failed ones, but the listing requirements lose IPO-screening functions, because the majority of listed companies performed poorly rather than better after their IPOs. This result is different from previous findings that regard an IPO market as a screening device in the developed stock markets.
Author (s) Details
Anhui International Studies University, Hefei, China and Wuchang University of Technology, Wuhan, China
Edith Cowan University, Perth, Australia.
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